Question

why is it that my credit is 690 and i still can't get a car loan they denied me everywhere?

i have tried to get a car loan but they kept on saying i have no credit, how is it i have no credit when it says here my score is 690 and i have been paying my student loans on time not one time late, shouldnt that count for something?

All Responses

i may be wrong, but to a certain degree, correct...whereas it is true on the consumer credit report and score, the lenders have their OWN credit score system such as FICO, BEACON. i found out the hard way. what occurs is that the lenders rely on their own credit score system, which essentially gives the same information as your consumer credit report. however, their systems assigns percentages to each category on the report. for example: 35% on amount owed, 10% on payment history and etc. this numbers i made up because i forgot..what i do, is to ask the lender, prior to pulling your credit report if i can have a copy. if they refuse, i would not do business with them. most will comply with your request. if they do, then get your consumer report and compare it with the lenders report and you will discover what the problem is. remember that credit is governed by Federal Credit Reporting Act (FCRA). example: if you have an old adverse acct 7 years or older, it should be removed. there is much more. get on your computer and check out FCRA. whatever you do, do no, do not, pay a credit repair service.fyi, i know about this because i have and am going thru it. Good luck and God bless....Manny

I have the same problem, for me it's because I don't have a sufficient payment history. They like to see 2 or 3 credit cards, a bank loan, personal loan from one of those legal loan sharks like Sun Loan, etc. The trick is to show that you consistantly pay your bills in full and on time.

Banks are a little apprehensive during our recession. Hopefully you have nothing on your report that indicates you have cards or loans in which you are not aware. Also, sometimes it is better to get a used car, make the payments for 12 months on time etc. and then the new card dealerships will be more happy to work with you. (I experinced this.)

well it depends on which credit union they grab your credit score. The best way to know for sure is to ask which one they are grabbing and second to get a full list from all three credit bureaus. the best place to get that is from annualcreditreport.com

try that first, but go to a credit union they are better and more willing to help out

The credit score is a factor for getting a car loan, but not the only factor. Though income and free cash flow don't factor into a credit score, they do factor into whether or not a bank would grant you a loan.

What is your job history like? Have you held down a job for a long period of times, or have you had a number of jobs? Are you in a field with some continuity, or might be easily targeted for layoff?

What do your hard inquiries look like? Though it is a very low factor in your credit score, it can be a deciding factor if it looks as if you are desperate for credit or if it just looks as if you are shopping around.

But, also keep in mind that different banks typically target different types of loans at given periods of time. For example, last year, Regions Bank was extremely stingy with granting car loans. However, at this time, it is a type of loan for which they are trying to drum up business.

One of the best things you can do for yourself over the long-term is to build a relationship with one or two banks. Open checking accounts, savings accounts, and get their credit cards. Having a relationship with a bank prior to a loan application can help if you have a positive relationship (savings building over time, lack of overdrafts, etc). It can be the difference between having a 690 and being rejected and a 650 and being accepted. They have more insight into you than just a score and some items on an application.

The recession and the new banking rules are coming into play, and credit has tightened up as a result.

maybe the deal structure is not right, everything comes in play when getting an auto loan, a 550 score with a paid auto loan in the past, and a solid income for 10 yrs, is more likely to get a auto loan than a 700 score with 1 or 2 ratail credit cards with low limits, payments for 10 to 12 months, and part-time or minimum wage income for 6 months. then comes the vehicle, the right vehicle (year, make, miles) with the right down payment will maike it easier in any credit scenario. and stop trying to get a loan every 2 weeks because you think now you are a 691 instead or a 690, wait and get a good down payment and get a car as new as you can but as cheap as you can, ex. a 2009 Nissan Versa with 50k for $11999 is waaay easier to get financed than a 2003 infiniti G35S with 100k for the same price.

I work in Auto Sales and if you have a 690 beacon here it doesn't necessarily mean your auto beacon is the same. In fact unless you've had an auto loan before you're probably known as what's called a ghost. The dealership had an obligation to share your credit score with you so I would start there. If you're even at 550+ Auto beacon you should still be able to get a loan. Here's the catch... Buy a new car with rebates... The deal structure looks great to the banks. Make sure the car is under 20k. The cheaper the better... ALWAYS. If its your 1st loan look at a jeep patriot, dodge avenger (lots of mfg rebates), or even a chevy sonic.. Base model is very inexpensive & banks look on that favorably when offering up loans for the 1st time. It shows you're being responsible vs trying to buy a $30k auto your 1st time out...

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